A biodegradable packaging material, a method of manufacturing the same, as well as products made of the material wherein the manufacture comprises extrusion onto a fibrous substrate one or mote polymer coating layers including at least one layer of a polymer blend consisting of (i) 20-95 wt-% of polylactide having a high melt index of more than 35 g/10 min (210° C.; 2.16 kg), (ii) 5-80 wt-% of polybutylene succinate (PBS) or a biodegradable derivate thereof, and (iii) 0-5 wt-% of one or more polymeric additives. The components of the blend are melted and blended in connection with the extrusion step. The goal is to improve extrudability, increase machine speed in extrusion and maintaining good adhesiveness to the substrate and wood heat-sealability of the coating. The products include disposable drinking cups and board trays, as well as sealed carton packages for solids and liquids.